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Business in Cyprus
Business in Cyprus my advice
Everything You Need to Know About Cyprus
Cyprus Business, it might be a small island country, but one of the outstanding attributes that make it stand out is its long radiant past, immersed in culture and history every step of the way.
The island is full of interesting and exciting opportunities regarding business, customs, events, and tourism.
Cyprus Business, it might be a small island country, but one of the outstanding attributes that make it stand out is its long radiant past, immersed in culture and history every step of the way. The island is full of interesting and exciting opportunities regarding business, customs, events, and tourism.
As the ancient Greek goddess’s birthplace associated with love, passion, pleasure, beauty, and procreation, Aphrodite, Cyprus is every inch the perfect travel destination for everyone.
Its sandy beaches, warm weather, thyme-scented mountains, ancient monasteries, terracotta pottery, classical ruins, and traditional party resorts offer the optimum Mediterranean experience.
The Island
The island has always been at crossroads between Europe, the Middle East, and Africa. In ancient times, a series of empires and kingdoms disputed over its mountain fortresses and seaports, which played a significant trade advantage over the eastern Mediterranean. These kingdoms left behind incredible historical relics, lively business centres, peaceful villages, and a multiracial lifestyle.
Where is Cyprus?
Cyprus is located about 70 kilometers south of Europe, 100 kilometers west of the Middle East, and about 500 kilometers north of Africa. It is the 3rd largest island in size and population in the Mediterranean, with an area of about 9,200 sq kilometers.
The countries surrounding the Mediterranean island are Turkey on the north, Egypt on the south, Greece to the west, and Syria to the east. Cyprus can be categorized as a Middle Eastern country, but it is considered a West European country due to its strong relations with Europe.
Climate and Geography of Cyprus
Cyprus has a concentrated Mediterranean climate of warm and sunny weather throughout the year. The island experiences mild winters and hot and dry summers, with average temperatures of about 33°C during the summer and 12°C in the winter season. The summer season is usually experienced between June to September, while the winter season occurs between November to March.
Cyprus comprises scattered plains along the south side of the island and a central plateau that hosts pine-clad mountains on the north side. Most of the western and southern parts of the island are covered with the massive Troodos mountains. Despite its tropical climate and rainfall, Cyprus has less than 11% of arable land. The main cash crops are flowers, citrus fruits, melons, vegetables, olives, cereals, potatoes, and vines.
Cyprus People – Ethnic Groups, Languages, and Religion
The people of Cyprus are known for their warm hospitality towards their fellow citizens and guests. Their way of life is a true reflection of the Greek work Xenos, which indicates the friendly culture that awaits visitors when they visit the island. There is never a dull moment on the island, renowned for its exceptional quality of life that emphasizes working to live rather than living to work.
Greek and Turkish are the two predominant ethnic groups found on the island. The Greek Cypriots, who comprise about four-fifths of the population, are direct descendants of Peloponnese Greeks who colonized the island starting about 1200 BC. On the other hand, the Turkish Cypriots, who make up about one-fifth of the population, are direct descendants of the Ottoman army soldiers. They invaded the territory in the 15th century.
The Language
The majority of the population uses the Greek language in their day-to-day life, while the minority uses the Turkish language. Due to its proximity to Turkey and the Middle East, a section of the population communicates in Armenian, while others fall under Arabic-speaking Christians.
Most Cyprus residents speak more than one language, with English being a common language among the majority, thanks to the island’s excellent educational system and low illiteracy levels.
Most Cyprus inhabitants are practising Eastern Orthodox Christians, while most Cypriots of Turkish descent are Sunni Muslims. The Church of Cyprus does not fall under the control of any patriarch, following the decree of emperor Zeno. There is also a section of Anglican Christian, Roman Catholic, Maronite, and Armenian communities living on the island.
Key facts:
- Cyprus has a population of about 1.2 million
- The capital city of the island is Nicosia
- Its commonwealth Youth Index is above 15 out of 49 countries
- Cyprus joined the Commonwealth in 1961, 1 year after gaining independence from Britain
Government and Legal Framework
Political Regime
In Cyprus, the oldest and most dominant political party is the Progressive Party of the Working People, founded in 1941. Other political parties that have had some significant impact in the country include the Democratic Rally and the Movement of Social Democrats EDEK.
Most Turkish Cypriots support the Republican Turkish Party, the Communal Liberation Party, and the National Unity Party.
Military Force
As a Republic, Cyprus is home to an elaborate military force that includes a national guard consisting of conscripts and volunteers. All men of ages 18 to 50 are compelled to serve the country up to 26 months in the military.
Constitutional Framework
Cyprus’s people adopted their constitution in 1960, paving the way for an executive Greek Cypriot president deputized by a Turkish Cypriot. Each administration is elected to a 5-year term with the cabinet comprises of 3 Turkish Cypriot and 7 Greek Cypriot members. Cyprus also has an elected House of Representatives that occupies 50 individuals, 35 Greek Cypriots, and 15 Turkish Cypriots, who serve for five years.
Justice System
The judicial system of the Republic is based on Roman law, where the government appoints judges. Despite this, the judiciary remains independent of the government’s executive arm, having the Supreme Court as the highest court and the final court of appeal in Cyprus.
Health Conditions
Cyprus enjoys high health standards in the region due to its favorable climatic conditions and well-organized private and public health services. The country’s life expectancy is about 80 years for women and 75 for men on the island, with a below-average infant mortality rate.
How to Open a Business in Cyprus?
As a country, Cyprus is rich in natural resources such as precious metals and minerals. It is believed that the name Cyprus came to be from the ancient Greek word for copper. In ancient times, copper was mined extensively on the island.
As a country, Cyprus is rich in natural resources such as precious metals and minerals. It is believed that the name Cyprus came to be from the ancient Greek word for copper. In ancient times, copper was mined extensively on the island.
Today, Cyprus offers an assortment of business opportunities to local and foreign nationals keen to start a business. Cyprus has a current, service-based, free-market economy that gives domestic companies and international investors the confidence to invest, grow, and flourish.
Cyprus heavily relies on its Service sector, which is considered as the backbone of the Cyprus economy.
Benefits of Starting a Company in Cyprus
Some of the advantages of starting a business in Cyprus include:
- The country enjoys a dynamic tourism industry
- The island is strategically located between the Middle East, Europe, and Africa
- The island has one of the lowest crime rates in the region
- The island enjoys a state-of-the-art telecommunication network and infrastructure
- The government has adopted economic reforms that make it easy to start and invest in the country
- Cyprus has a favorable tax regime where sales of securities, profits from permanent offshore establishments, and dividend income are exempted from tax
How to Start a Company in Cyprus?
The first step of getting a company registered on the island includes registering a company name with the Cyprus Company Registrar. After this, the following documents are required to be submitted to the Department of Registrar of Companies:
- Proof of physical address of the office
- HE1 Form
- HE2 Form
- HE3 Form
- Passport copies of the Company Secretary and Directors
- Articles of Association
- Memorandum of Association
After submitting these documents and verification, a Certificate of Incorporation is released, allowing the company to seek a Value Added Tax (VAT) number. This is done by registering the company with the Cyprus Tax Department.
Other requirements needed during a company formation on the island include:
- Social Contribution registration
- Proof of a local registered office
- 1 Company Secretary
- A minimum of 1 Director and 1 Shareholder of any nationality
- There is no minimum capital required
Business Opportunities Available in Cyprus
Tourism
The tourism sector is one of the dominant and significant sectors of the Cyprus economy. Over the years, tourism has emerged as the most resilient commercial sector on the island, generating over 10 percent of its GDP. In 2016, Cyprus saw an influx of visitors surpassing the 3 million mark.
Construction
The Government of Cyprus (opens in a new tab) offers substantial support to companies and individuals looking to venture into the construction business. Eye-catching incentives are given to such entities in the government’s quest to develop the island.
Shipping Industry
Considering Cyprus is an island, the maritime sector is one of the most promising industries on the island, with over 100 shipping companies in operation. According to my research, investing in this sector promises more returns than any other sector.
Property Rental Market
The real estate market is booming in Cyprus. Local individuals and foreigners who have the capital to build both office and home blocks in any of Cyprus districts stand to reap huge profits on their investments.
Considering all factors, the business environment on the island is favorable for both local and foreign investors. For foreigners, a company can be registered within five working days, and a bank account can be up and running within 15 days. VAT rates are low, electricity bills, rent arrears, and salaries are also low. Many university graduates in Cyprus are available to populate your business, thanks to the low illiteracy levels.
While Cyprus is a perfect destination for a memorable vacation, the country also offers unlimited opportunities to start and own a business. These opportunities are open to both locals and foreigners.
